PROVIDENCE – Credit risk is low and bond quality is high for the $135 million in soon-to-be-sold state bonds for capital projects, according to two ratings agencies.
Fitch Ratings assigned an “AA” rating to the 2021 series bonds, while Moody’s Investors Service assigned an “Aa2” rating. Each grade is the rating agency’s second-highest rating, based on bond quality and credit risk.
Inside Scoop on PC’s Sports Administration Program
This past August Providence College announced its newest graduate program, an online Master of Science…
Learn More
Each agency in its assessment described the state economic outlook as stable, highlighting its strong financial management practices, including a history of balanced budgets and reserves through its rainy day account. Both also noted that the state ended fiscal 2021 in a surplus, and is projecting additional revenue increases in fiscal 2022 thanks to federal reimbursements and funds through the American Rescue Plan Act.
The $135 million in bonds, approved in a referendum earlier this year, will help pay for capital projects, including education facilities, affordable housing, highway improvements and environmental projects. It includes $90.5 million in tax-exempt bonds and $44.5 million in taxable bonds, with bonding slated to close Oct. 12.
Fitch in its report also affirmed existing ratings for a series of state bonds, including other general obligation bonds (AA), certificates of participation (AA-), revenue bonds for the R.I. Convention Center Authority (AA-) and revenue bonds through the R.I. Commerce Corp. historic structures tax credit financing program (AA0). It also upheld the state’s credit, or issuer default rating of AA.
Nancy Lavin is a PBN staff writer. Email her at Lavin@PBN.com.
